BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 804 (Roger Hernández) - Shorthand reporters: continuing education requirements ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 23, 2015 |Policy Vote: B., P. & E.D. 7 - | | | 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: June 22, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 804 would require the Court Reporters Board of California (Board) to adopt regulations establishing minimum continuing education requirements as a condition for renewal of a court reporters certificate, and to establish a procedure for approving providers of continuing education courses. Fiscal Impact: One-time staff costs of $51,000 in 2016-17 and $43,000 in 2017-18 for the Board to develop and adopt regulations to AB 804 (Roger Hernández) Page 1 of ? establish continuing education requirements and establish a process for approving providers of continuing education. (Court Reporters Fund). Ongoing staff costs of $21,000 in 2017-18 and $34,000 annually thereafter to process continuing education documentation from licensees. (Court Reporters Fund) Negligible revenue increase to the extent the Board established the maximum fee of $40 to approve continuing education providers. The Board has only identified eight potential providers currently offering courses or seminars that would address the bill's continuing education requirements. Background: Existing law provides for the certification and regulation of shorthand reporters and the regulation of shorthand reporting corporations by the Board. There are currently approximately 7,000 certified persons who have met the basic minimum standards of practice to provide the public with competent and impartial verbatim reporting of depositions and oral court and judicial proceedings. The Board also specifies curriculum for court reporting schools, receives and investigates complaints, disciplines court reporters and schools, and administers a fund that provides free transcripts to indigent civil litigants. Existing law authorizes the Board to charge a fee of $40 for filing an application for each examination for a certified shorthand reporter certificate (commonly known as court reporters certificate), an initial license fee of $125, and an annual renewal fee of $125. The fees are currently established at the statutory maximum. In order to obtain a license, court reporters must attend a Board-approved court reporting school and pass two written exams and a performance exam. Court reporters who are employees of the court system (known as "official" court reporters), are required by the Administrative Office of the Courts to take at least eight hours of continuing education every two years as a condition of employment. "Freelance" court reporters, individuals hired by court reporting businesses, firms, or attorneys to report depositions, do not have a continuing education requirement. AB 804 (Roger Hernández) Page 2 of ? Proposed Law: AB 804 would require the Board to adopt regulations to establish minimum continuing education requirements for renewal of a certified shorthand reporter certificate by July 1, 2016, and require a certificate holder to submit proof of completion of continuing education as a condition of certificate renewal no sooner than six months after the adoption of the regulations. The bill would authorize the Board to establish exceptions to the continuing education requirements for a certificate holder who cannot meet the requirements for reasons of health, military service, or undue hardship. The bill also requires the Board to establish a procedure for approving providers of continuing education courses, and authorizes the Board to establish a fee of up to $40 on providers of continuing education courses. Related Legislation: SB 671 (Price, 2011) was substantially similar to this bill and would have required the Board to adopt regulations to establish continuing education requirements as a condition for certificate renewal and to establish a procedure for approving providers of continuing education. SB 671 was vetoed by Governor Brown with the following statement: This bill would make license renewal for court reporters contingent on continuing education. The whole idea of legally mandated "continuing education" is suspect in my mind. Professionals already are motivated to hone their skills - or risk not getting business. Requiring them to pay fees to "continuing education providers" is an unwarranted burden. AB 2189 (Karnette, 2008) was also substantially similar to this bill and was vetoed by Governor Schwarzenegger, who noted that the proposed continuing education requirements impose additional burdens on a regulated profession without a compelling need. AB 804 (Roger Hernández) Page 3 of ? Staff Comments: Staff notes that the Court Reporters Fund currently has a structural deficit. According to the Fund Condition Statement in the Governor's Budget, the fund balance has declined from $1.1 million at the end of the 2013-14 fiscal year to $776,000 at the end of the current fiscal year, and the fund is projected to have a reserve of only $368,000 at the end of the 2015-16 fiscal year. Licensing and regulatory fees generate approximately $935,000 annually, and state operations expenditures are approximately $1 million annually. In addition, there are annual transfers of $300,000 to the Transcript Reimbursement Fund that is used to provide free transcripts to indigent civil litigants. All licensing fees are currently at the statutory maximums. At the current pace, the fund will have a negative balance in 2017-18. The Board is up for sunset review hearings in the coming year, at which time the structural funding deficit will be discussed in detail. Staff notes that the costs related to this bill, although minor, would exacerbate the structural deficit in the Court Reporters Fund. -- END --